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Journalism of Courage
After announcing the formation of the Securities Market Infrastructure Leveraging Expert SMILE task force, the Securities and Exchange Board of India Sebi is now working on a detailed code of advertising for all intermediaries associated with the capital market, and stock brokers in particular.
The regulator has almost finalised the code, and soon, it is expected to invite public comments by putting it on its website before implementing it.
Besides, the SEs also do not give their comments on the quality of such ads to brokers who approach them for such permission. The new code on advertising is expected to clear all these grey areas and is expected to spell out clearly what guidelines the brokers are expected to follow, Sebi officials said.
Market observers feel that a separate code of advertising for brokers is also significant from the point of view of heightened market activity expected in the future. The broking business is expected to grow along with the rise in the number of investors.
The regulator is also considering revising major circulars issued by it in the past, through which it regulates SEs and stock brokers. This has been necessitated in the wake of amendments carried out in the Sebi Act, 1992 in December 2002. Sebi was given more powers through these amendments, including powers of imposing monetary penalties, sources added.
